RUSSIA – BEMA GOLD CORP. of Vancouver has closed a $132-million bought deal financing, most of which will be used for exploration and construction of its Kupol gold-silver property in the Chukotka area of the country. Bema holds 75% of the project, and the balance is owned by the local government. Total pre-production costs have been estimated at between $380 million and $425 million.
The Kupol feasibility study proposed a gold production rate of 550,000 oz per year over a 6.5-year mine life. Production will begin in mid-2008. The study put probable reserves at 7.1 million tonnes grading 20.3 g/t Au and 214.0 g/t Ag. Simultaneous open pit and underground mining are planned. The 3,000-tonnes/day mill is designed with a primary crushing and gravity circuit followed by whole-ore leaching and a Merrill-Crowe circuit. Over the life of the mine, total cash costs are estimated to be US$88/oz.
The timeline for development of the Kupol project is available in Bema’s presentation to the Las Vegas Precious Metals Investment Conference this month and may be viewed at www.Bema.com.